Punjab will not be importing any coal to run its thermal power generation plants to optimum capacity as the power demand in the state peaks during the ongoing paddy season. Instead, the state is getting an enhanced supply of domestically produced coal from Coal India Limited.

HOW PSPCL IS SAVING MONEY:-

No imported coal for the state's thermal plants to help save Rs100 crore. Around 18.89 LMT was imported last year.
Cheaper power is being bought (1956.79 LU on June 14) instead of generating electricity from own sources (506.49 LU). Electricity is bought at Rs4.05 per unit, while the cost of own power generation is Rs6 per unit.

The decision will help the cash-strapped state government save a whopping Rs 100 crore as it will use the cheaper coal from Coal India. The latter has agreed in principle to give additional coal to the government as well as private thermal power plants in the state under the import substitution policy.

Punjab’s reliance on imported coal for running its power plants during the paddy season is huge. Over 15 per cent of the coal used during this time is imported from Indonesia. Last year, 18.89 lakh metric tonnes of coal was imported while 14.74 lakh metric tonnes of coal was imported in 2018-19 to meet the surge in power demand during the paddy season.